Brazilian monthly inflation spiked in October on rising fuel costs and higher public utility rates, the Brazilian Census Bureau (IBGE) said Friday. October monthly inflation weighed in at 0.42%, up from just 0.16% in September. The 12-month rate rose from 2.54% as of September to 2.7% in October. Economists pointed to September’s 2.54% as the likely trough for inflation, with the rate rising slowly through the end of the year to about 3.0% and then hitting 3.5% to 4.0% in 2018. Such figures would still be well within the government target of annual inflation at 4.5%. October saw increases in government-controlled public utilities rates and in fuel prices. Housing prices also rose. Food prices continued to decline. Brazilians could face a somewhat higher inflation rate in 2018 because of an expected decline in the grain and oilseeds crop along with rising consumer demand as part of a broad economic recovery.
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